Close a jobsite petty-cash packet by proving that the opening float equals supported purchases plus returned cash plus any unresolved shortage or overage. Assign every supported purchase to the correct job or approved overhead purpose before month-end. A replenishment restores the float; it should not create the same job cost a second time.
This is an operational control. The contractor’s accountant sets the approved accounts, materiality policy and correction method. The office also decides who may hold cash, approve purchases and investigate differences.
Build a four-part petty-cash proof
Give each packet a stable reference such as PC-0930-YARD1 and collect:
- Opening float: amount issued, custodian, issue date and source of cash.
- Supported purchases: receipt, vendor, date, amount, business purpose, job and approval.
- Cash returned: counted amount, return date and receiving person.
- Replenishment or exception: approved amount restored to the float, or a documented shortage or overage.
The IRS recordkeeping guidance identifies invoices, receipts, account statements and petty-cash slips as supporting documents. It also notes that more than one document may be needed to support all elements of an expense. A cash count without the receipt and job purpose is incomplete.
Worked example: close a $600 float across two jobs
Illustrative example. A superintendent receives a $600 float. The packet contains approved receipts of $146 for Job A-17, $229 for Job B-04 and $35 for approved shop supplies. The custodian returns $190 in cash.
| Packet component | Amount | Control |
|---|---|---|
| Opening float | $600 | Cash issue record |
| Job A-17 receipts | ($146) | Receipts and job approval |
| Job B-04 receipts | ($229) | Receipts and job approval |
| Approved shop supplies | ($35) | Overhead approval |
| Cash returned | ($190) | Count and return receipt |
| Unresolved difference | $0 | Packet closes |
The supported purchases total $410 and the returned cash is $190. Together they equal the $600 opening float. If the office replenishes $410 for the next packet, record that replenishment against the petty-cash control under the accountant-approved method. Do not record another $410 of job costs if the receipts already created those costs.
Assign each line before posting the packet
The vendor name alone may not identify the job. Require a job reference, purchase purpose and approver for each receipt. Intuit’s current project guidance explains that expense line items can be assigned to projects separately and that the project differs from the payee. That distinction supports splitting one packet across jobs without treating the custodian or cash source as the job.
If one receipt covers two jobs, retain the original receipt and attach an approved line split. If no project is supported, leave the line unresolved or use an approved overhead purpose. Do not guess from where the receipt was found.
Keep missing receipts visible
Create an exception line with the amount, purchaser, stated purpose, job, evidence requested and due date. Do not manufacture a receipt or silently net a shortage against another supported purchase. Follow the contractor’s approved policy for unresolved items.
Use the missing-receipt handoff to assign follow-up ownership. Use the invoice approval map when the purchase also needs project or management approval.
Close the packet after five checks
Confirm that:
- opening cash has a custodian and issue record;
- every purchase has support, purpose, job or overhead assignment and approval;
- returned cash was counted and acknowledged;
- purchases plus returned cash explain the opening float; and
- replenishment does not duplicate the underlying costs.
Carry any remaining shortage, overage or unsupported line as an exception with an owner and review date. A balanced packet confirms the cash arithmetic; it does not replace approval or accounting review.
Sources and further reading
Source links provide background. The workflow and illustrative examples above are original educational material.